The United States Securities and Exchange Commission, has released a statement alleging that Hydrogen Technology Corporation and its market marker, Moonwalkers Trading Limited, participated in a scheme to artificially influence the trading volume and price of Hydro tokens. The SEC has charged both companies with manipulating the market.
In a statement released on September 28, the Securities and Exchange Commission (SEC) stated that former Hydrogen CEO Michael Ross Kane had hired Moonwalkers and its CEO Tyler Ostern “to create the false appearance of robust market activity” after the distribution of Hydro tokens in 2018 via airdrops, bounty programmes, and direct sales. After that, Kane directed Moonwalkers to sell the tokens in the “artificially inflated market” in order to generate a profit for Hydrogen that was more than $2 million.
“As we allege, the defendants profited from their manipulation by creating a misleading picture of Hydro’s market activity,” said Joseph Sansone, chief of the SEC Enforcement Division’s market abuse unit. “The SEC is committed to ensuring fair markets for all types of securities and will continue to expose and hold market manipulators accountable.”
The actions of Kane, Ostern, and the firms, as well as the SEC’s interpretation of those actions, constitute manipulation of the cryptocurrency market and a violation of sections of U.S. securities laws. The government agency reported that Ostern had consented to pay more than $40,000 in disgorgement and interest, subject to approval by a federal court in New York, “with civil monetary penalties to be determined at a later date.” The SEC’s complaint sought similar actions against Kane, in addition to having the former CEO barred from holding officer and director positions.
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